FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

Storm Water Collection System The City is responsible for maintenance of the Storm Water Collection System that transfers rain water from the developed areas of the City into our local creeks. Day to day maintenance is managed by the Community Services Maintenance Team in coordination with general street maintenance, the Engineering Division is responsible for improvement projects that expand or rehabilitate the System, and the Environmental Programs Division is responsible for managing the City’s storm water pollution prevention programs.

Base Service Operations

Funding for the day to day operations management of our storm drain systems is primarily supported by the General Fund and has been adequate with the exception of future replacement funding for storm drain pumps and funding for inspections. These funding issues are outlined in the Streets and Sidewalks Section of this report.

Capital Improvements

Capital projects that expand the City’s system are funded through impact fees. The City has reserved several million dollars in the Storm Drain Impact Fund to support connection to the upcoming Upper Llagas Creek Flood Control Project. The Flood Control Project is managed and funded by the Santa Clara Valley Water District, but once completed, the City plans to connect to the new system. This project will eliminate the majority of the flooding issues for the City. Funding for capital improvements relating to rehabilitation to the storm drain system cannot be funded through impact fees. The City previously received fees from developers for storm drain rehabilitation. There are no dedicated capital funding sources for rehabilitation and major rehab projects would need to identify funding on a project by project basis. The City is regulated by the State Water Resources Control Board in regard to storm water pollution prevention. In 2015, the Board adopted the Statewide Trash Provisions which will eventually require the City to install, operate, and maintain State-certified devices that capture all trash down to 5 millimeters in size from Priority Land Use areas including industrial, commercial, mixed-use, high-density residential and public transportation stations. It is anticipated these provisions will be adopted in 2019, with a ten-year period to complete improvements relating to compliance by 2029. Although this is far into the future, planning on this issue is important as the improvements related to the provision could be extend into the range of millions of dollars. The State of California recently passed State Senate Bill 231, which redefines “sewer” to include storm water, which in turn allows the charge of a fee for the management of the storm water systems. The intent of the legislation is to allow cities and counties to establish fees for storm water systems, versus having to pass ballot measures to establish a tax for this purpose. No Cities have utilized the provision of the new law, but a group of large Cities is working together to implement, as law suits relating to the validity of the new law are anticipated. If SB 231 stands up to legal scrutiny, it could be an excellent option to fund the future needed capital improvements and potentially even operations. Policy Discussion

INFRASTRUCTURE UPDATE REPORT CITY OF MORGAN HILL

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